IRW-News: Berkeley Energia Ltd.: Berkeley Energia: Quartalsbericht Juni 2017

    IRW-PRESS: Berkeley Energia Ltd.: Berkeley Energia: Quartalsbericht Juni 2017

Quartalsbericht Juni 2017

 Erschließung der Mine Salamanca kommt gut voran

- Die Erschließung der Uranmine Salamanca kommt weiter gut voran:
o Alle Infrastrukturarbeiten sollten wie geplant abgeschlossen werden können.
o Die primäre Brechanlage wurde an den Projektstandort geliefert; die sekundäre
Brechanlage ist nun im Lager von Sandvik in Madrid eingetroffen. 
o Das FEED-Programm (Front-End Engineering Design) wurde zeit- und budgetgerecht
abgeschlossen.
o Der Erwerb der Grundstücke ist nahezu abgeschlossen; bislang wurden über 600 Hektar
erworben oder gepachtet 

- Verstärkung des Board of Directors und des Managements:
o Ernennung der renommierten Bergbau- und Finanzexperten Herr Nigel Jones und Herr Adam Parker zu
nicht-exekutiven Direktoren
o Das Unternehmen kommt seinem Versprechen nach, lokale Beschäftigungsmöglichkeiten zu
schaffen; im Laufe des Quartals wurden 20 neue Mitarbeiter und Vertragsbedienstete eingestellt;
insgesamt beschäftigt das Unternehmen nun nahezu 70 Arbeiter.  
o In diesem Quartal fanden weitere Ausbildungsprogramme statt. Das Unternehmen hat mittlerweile
über 120 Anwohnern die Fertigkeiten für die 450 Arbeitsplätze, die durch das Projekt
geschaffen werden, vermittelt. 

- Finanzangelegenheiten verlaufen nach Plan:
o Die endgültigen Investitionskosten wurden nach dem Abschluss des FEED-Programms auf 82,3
Millionen Euro (93,8 Millionen USD) verringert.
o Starkes anhaltendes Interesse seitens strategischer Investoren und Geldgeber.
o Robuste Bilanz mit 26,3 Mio. USD an Barmitteln und keine Schulden.

- Exploration: 
o Die nächste Phase der Explorationskampagne wurde mit einem Schwerpunkt auf der Abgrenzung
weiterer Zielzonen, die ähnliche Eigenschaften wie Zona 7 aufweisen, eingeleitet
o Zwei Bereiche wurden für ein intensives geochemisches Erprobungsprogramm ausgewählt,
das von den jüngsten Uranexplorationstechniken Gebrauch machen wird. Zusätzlich werden
radiometrische und Radonstrahlungsmessungen durchgeführt.

- Uranmarkt zeigt Anzeichen einer Besserung:
o Produktionskürzungen bei kostenträchtigen Betrieben bringen den Markt wieder ins
Gleichgewicht. 
o Das Unternehmen erhält mehr und mehr Angebote von Versorgungsunternehmen für
Abnahmeverträge. 
o Bislang wurden für die ersten sechs Produktionsjahre langfristige Abnahmeverträge
über 2,75 Millionen Pfund U3O8-Konzentrat plus optional weiteren 1,25 Millionen Pfund
abgeschlossen. 
o Der durchschnittliche Fixpreis des Unternehmens liegt über 42 USD für jedes Pfund der
vertraglich festgelegten und optionalen Abnahmemengen. 

Geschäftsführer Paul Atherley sagte dazu:
Wir sind mit dem in diesem Quartal erzielten Fortschritt zufrieden: u.a. wurde die Brechanlage
angeliefert, der Investitionsbedarf (CAPEX) endgültig ausgearbeitet und das Board und das
Managementteam verstärkt.

Dank den Fortschritten kommen wir unserem Ziel, einer der zehn führenden Uranproduzenten der
Welt - und noch dazu einer der kostengünstigsten - zu werden, näher. Wir sind bestens
aufgestellt, um die 130 Reaktoren in der Europäischen Union sowie Versorgungsunternehmen im
außereuropäischen Ausland mit unserem Konzentrat zu versorgen.

Der anhaltende Erfolg unseres Programms zu Sicherung von langfristigen Abnahmeverträgen zu
hervorragenden Preisen belegt den einzigartigen Vorteil der Mine Salamanca, eine
Versorgungsdiversifikation weg von Nicht-OECD-Staaten hin zu Rechtsgebieten der Ersten Welt zu
bieten. 

Wir sehen uns ermutigt durch die lokale Unterstützung und stellen weiterhin vornehmlich
Arbeiter aus der örtlichen Gemeinschaft ein. Wir freuen uns sehr, dass wir den Leuten, die wir
ausgebildet haben, jetzt eine Beschäftigung anbieten können. Aktuell beschäftigen wir
70 Mitarbeiter und Vertragsbedienstete am Standort und gedenken diese Zahl mit der Fortsetzung der
Bauarbeiten schnell zu erhöhen.

Zusätzliche Informationen erhalten Sie über:
Paul Atherley-
Geschäftsführer-
[phone]--

Hugo Schumann
Chief Commercial Officer
[e-mail]

Buchanan Communications Ltd.
Bobby Morse-
Senior Partner-
[phone]--

Anna Michniewicz
Account Director
[e-mail]

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auf der Firmenwebsite!


Overview

Infrastructure works on site are progressing well. The road deviation programme is well advanced
and land is now being cleared to allow for the installation of the processing plant.

The primary crusher, delivered to site earlier this month, and the secondary crusher, which is
currently in Madrid, were fabricated by Sandvik in Finland. Vibramech, based in South Africa, is on
track with the fabrication of the vibrating grizzly feeder and screens. 

The recent arrival on site of the primary crusher marks a significant milestone for the Company
as it has progressed from the development phase to the construction phase. 

Equipment procurement for realignment of the electrical power line has been completed and the
line deviation will commence once the road construction is complete. 

Employment levels are increasing with nearly seventy employees and contractors now on site and
this will rise to 450 when the mine is in production. Over 120 locals have now completed the
Companys skills training programmes equipping them with the skills necessary for positions with the
Company. 

These rising levels of employment are already having a positive effect on a local community badly
affected by long term unemployment, especially amongst its youth.

The Company remains committed to environmental excellence and as part of the Environmental
License and the Environmental Measures Plan it will plant 30,000 young oak trees, a six fold
increase on the number of older trees being cleared, greatly improving the ecological and
agricultural value of the area. The agreement will come into force once the favourable report issued
by the Environmental Territorial Service of Salamanca has been approved by the General Directorate
of Natural Environment of the Castilla y León Regional Government.

This reforestation programme commenced earlier this year with an agreement with the highly
supportive local municipality of Vitigudino which details the arrangements for the planting of the
first 20,000 young oak trees over a 50 hectare plot. 

The Company is currently evaluating quotes from a number of experienced mining contractors and is
encouraged by the competitive bids received. A key focus is the management of cost escalation over
the term of these and all major contracts and suppliers to the Company.
Capital and the main contractual operating costs were finalised following the completion of the
FEED being undertaken by AMEC Foster Wheeler and came in 1% below the Definitive Feasibility Study
estimates, reinforcing the Salamanca mines position at the bottom of the cost curve.  

The next phase of the Companys exploration programme will focus on discovering additional
deposits with similar characteristics to Zona 7. Following extensive structural mapping and the
interpretation of regional geological structures, two areas have been selected for an intensive
geochemical sampling programme incorporating the latest uranium exploration techniques, in addition
to some others like radiometrics and radon emissions.

The Company has noted increased public tender activity by major global utilities looking to enter
into long term contracts in the medium to long term horizon. The Company is actively pursuing both
public and private off-take opportunities with global utilities in the ordinary course of business
and will report regularly on how this progresses. 

The Companys view is that whilst uranium prices may remain flat in the near term, from late 2018,
when the Salamanca mine is scheduled to come into production, the market is expected to be dominated
by US utilities looking to re-contract who will at the same time be competing with Chinese new
reactor demand, which may lead to higher spot and term contract prices.

The Company currently has 2.75 million pounds of U3O8 concentrate under long term contracts over
the first six years of production. Potential exists to increase annual contracted volumes further as
well as extend the contracts by a total of 1.25 million pounds.

Across the Companys portfolio, the average fixed price per pound of contracted and optional
volumes is above US$42 per pound. This compares favourably with the current spot price of around
US$20 per pound. The Company will continue to build its sales book as the market continues to
improve.

During the recent Spanish State Visit to the UK, the Company participated in the UK-Spain
Business Forum as a delegate of the Department of Industry and Trade. At the event, King Felipe
highlighted the importance of post-Brexit bilateral investment and trade between the two
countries.

The Company is in a strong financial position with US$26.3 million in cash and no debt whilst it
is advancing its discussions with strategic partners and potential financiers. 


Board strengthened with the appointment of two Non-Executive Directors

Mr Nigel Jones and Mr Adam Parker were appointed as an independent Non-Executive Directors of the
Company on 7 June 2017 and 14 June 2017 respectively. 

Mr Jones has thirty years experience in the international mining sector. He has considerable
corporate development and marketing expertise, including being responsible for the negotiation of
key uranium supply agreements for Rio Tinto. 

Mr Jones spent two decades at Rio Tinto, where ultimately he held the position of Global Head of
Business Development and prior to that Managing Director of Rio Tinto Marine, Head of Investor
Relations and Marketing Director, Uranium.

Mr Parker joins the Company after a long and successful career in institutional fund management
in the City of London spanning almost three decades, including being a co-founder of Majedie Asset
Management, which today manages assets of approximately £14 billion.
He was instrumental in building Majedie Asset Management into the successful investment boutique
that it is today. He managed funds including the Majedie UK Opportunities Fund, the Majedie UK
Smaller Companies Fund and a quarter of the Majedie UK Focus Fund, which all outperformed their
benchmarks during his tenure.

Mr Parker retired from Majedie Asset Management in 2015 and has no ongoing input or influence in
the management of its investments, including the firms current ownership of approximately 5.30% of
the Company. 

On 7 June 2017 Dr Jim Ross retired from the Board after over twelve years of excellent service.


Primary Crusher Delivered to Site

The delivery of the primary crusher to site marked a key milestone in the construction of the
Salamanca mine.

The crusher is the first major piece of processing equipment to be delivered to site and its
arrival marks the Companys transition from the development phase to the construction phase. The
construction and commissioning phases are estimated to be completed during the second half of
2018.

The 400 tonne per hour crusher was manufactured by Sandvik Group in Finland, who have also
fabricated the secondary crusher, which is currently in Madrid and will be delivered in the coming
months. Sandvik is one of the world's leading suppliers of mining equipment and the crusher was one
of the long lead items included in the use of proceeds from the equity raise completed in the fourth
quarter of 2016.

Please refer to https://www.berkeleyenergia.com/crusher for photographs of the crusher being
delivered to site.


Infrastructure development continues and major contracts being evaluated

Initial infrastructure development commenced in August 2016 with the re-routing of the existing
electrical power line to service the mine and a five kilometre realignment of an existing road. 

The road deviation continues to proceed as planned and will be completed in the third quarter
this year. The upgrade to the existing electrical power line will commence this August and will be
completed by the end of the year. The deviation programme has been designed to create pedestrian
footpaths and secure cattle paths in order to maximize the benefit to the local community. 

The clearing of land where the processing plant, medium voltage substation, reagent storage
facilities and buildings will be built, and the laydown area for mining and construction
contractors, has now commenced. Many of the trees being cleared from these plots of land are
suffering from a fungal pest that prevents them from growing and are being replaced with young,
healthy oak trees that will improve the ecological value of the area. The cleared trees have been
used for biomass.

Quotes from a number of experienced mining contractors are currently being evaluated and the
Company is encouraged by the competitiveness of the bids received. A key focus is the management of
cost escalation over the term of these and all the major contracts with and suppliers to the
Company.

Committed to the highest environmental standards

The Salamanca mine is being developed to the highest international standards and as such, the
Companys commitment to the environment remains a priority. 

The mine has been designed according to the very latest thinking on sustainable mining. The
extraction and treatment areas will be continuously rehabilitated as operations progress and with
minimum disturbance during operations. Once operations are complete, all areas utilised by the
Company will be fully restored to an increased agricultural value. 

As part of the Environmental License and the Environmental Measures Plan over 30,000 young oak
trees will be planted over an area of 75 to 100 hectares.  

For every tree being cleared six will be planted in its place, which will greatly improve the
ecological value of the area. The reforestation programme began earlier this year following an
agreement with the highly supportive municipality of Vitigudino, as part of the Companys commitment
to environmental excellence. 

This agreement details the arrangements for the planting of 20,000 trees over a 50 hectare plot
in the municipality of Vitigudino. This plot forms part of an area of more than 500 hectares owned
by the municipality that is currently used by cattle farmers, despite its deteriorating ecological
value. 

The Company will make payments to the municipality of Vitigudino for the next three years to
cover the costs of planting and maintaining the young trees and looks forward to entering into
similar agreements with the municipalities of Retortillo, Villavieja and Villares de Yeltes. 

Capital costs for Salamanca reduced by 1% to 82.3 million

The capital cost for the construction of the Salamanca mine has reduced to 82.3 million (US$93.8
million), a 1% reduction over previous estimates, confirming the projects status as one of the
lowest cost uranium mine developments in the world today.

The project benefits from well-established EU infrastructure and a highly competitive cost
environment combined with short lead times for major equipment items.

The estimate for bringing the mine into production was prepared as part of the FEED by the Amec
Foster Wheeler Group, one of the worlds largest engineering groups.

The FEED is the execution phase of the project during which the overall engineering and process
design is translated into equipment procurement packages and awards to specialist sub-contractors. A
number of Spains most reputable engineering groups provided their input into the Companys study
work, including Madrid IBX-35 listed companies Ferrovial and OHL.

The final capital costs reflect all detailed design work carried out during the FEED, and
resulted in an update to the nature and quantity of materials required to build the Salamanca mine,
with costs from contractors and suppliers being amended based on final bidding packages. 

The Company will continue to pursue cost optimisation opportunities as it commences full
construction this summer, which includes the evaluation of the indirect costs.

Exploration programme expanded targeting Zona 7 style deposits

The next phase of the Companys exploration campaign has commenced and will focus on discovering
additional deposits with similar characteristics to Zona 7, which is located close to the surface
and without a strong radiometric anomaly present.


The discovery of the high grade extensions at the Zona 7 deposit in late 2014 transformed the
economics of the mine and changed the Companys geological model for the region. 

In parallel with the ongoing development on site, the Company continues to conduct further
exploration programmes aimed at  increasing the projects production profile or mine life. 

Following extensive structural mapping and the interpretation of regional geological structures,
two areas totalling 100 km2 have been selected for an intensive geochemical sampling programme, that
will include 2,500 samples on a 200m x 200m grid. 

The programme will incorporate the latest uranium exploration techniques with samples being
tested for mobile metal ions using the Ionic Leach technique. This highly sensitive technique can
detect extremely low levels of uranium and other critical elements and is widely acknowledged to be
the most adept at identifying subtle anomalies.

To complement the soil sampling/Ionic Leach programme, the Company will also undertake ground
radiometric survey readings and radon emissions tests at each of the sample collection points.

Two field crews will be focussed on carrying out the planned exploration activities over the two
priority areas during the coming months, with the goal of identifying drill targets.

In addition to this new exploration programme, the Company will continue with exploration below
Zona 7, where previous high grade intercepts were found beneath the current defined resource,
demonstrating continuity of mineralisation and potential for the resource to increase.

Strong interest from financiers and strategic partners

The Company is in a strong financial position and is considering a range of financing options
whilst remaining focused on its aim of minimising dilution in order to protect the equity value of
its shareholders.

The Company continues to progress discussions with various potential strategic partners and
financiers interested in taking a minority stake in the Salamanca mine, all of whom are currently
undertaking detailed legal, financial and technical due diligence. 

Off-Take programme update and notable increase in public tender activity

The Company currently has 2.75 million pounds of U3O8 concentrate under long term contracts over
the first six years of production. Potential exists to increase annual contracted volumes further as
well as extend the contracts by a total of 1.25 million pounds.

The Company has maintained its preference to combine fixed and market related pricing across its
contracts in order to secure positive margins in the early years of production whilst ensuring the
Company remains exposed to potentially higher prices in the future.

Across the portfolio, the average fixed price per pound of contracted and optional volumes is
above US$42 per pound. This compares favourably with the current spot price of around US$20 per
pound.

The Company notes an increase public tender activity by major global utilities looking to enter
into long term contracts in the medium to long term time horizon. The Company is actively pursuing
both public and private off-take opportunities with global utilities in the ordinary course of
business and will report regularly on progress. 

The Companys view is that whilst uranium prices may remain flat in the near term, from late 2018,
when Salamanca is scheduled to come into production, the market is expected to be dominated by US
utilities looking to re-contract who will at the same time be competing with Chinese new reactor
demand, which may lead to higher spot and term contract prices.

Commitment to the community 

The Company continues to be committed to the rejuvenation of the local community and being a good
neighbour and community business partner. The Company has already invested over 70 million in the
area over the past decade and is planning to invest an additional 250 million in the coming years as
the mine develops.

The Company has been by far the biggest investor in a rural community suffering from decades of
under investment and high levels of unemployment, especially amongst its youth. 

The Company has signed Cooperation Agreements with the highly supportive local municipalities,
demonstrating its commitment to working collaboratively with the community. 

To date, through these agreements, the Company has provided Wifi networks for local villages,
built play areas for children, repaired sewage water plants, upgraded sports facilities, and
sponsored various sporting events and local festivals

Employment and training 

The policy of preferentially hiring and training local residents has been very well received with
the training programmes continuing to be heavily oversubscribed; to date, over 120 locals have
attended courses organized by the Company and 25% of residents from the local area have applied for
jobs. 

The Company has received over 21,000 applications for the first 200 direct jobs it will create.
The mine will create over 450 jobs once in full production and the University of Salamanca has
estimated that for this type of business there will be a multiplier factor of 5.1 indirect jobs for
every direct job created, resulting in over 2,500 direct and indirect jobs being created as a
consequence of the Companys investment in the area. 

During the quarter, the Company added a further 20 employees to its team at the Salamanca mine
bringing the total number of employees and contractors at site to close to 70.

The recently appointed candidates are carrying out activities such as fencing the project,
preparing for the next exploration campaign, preparing the 50 hectare plot in Vitigudino for
reforestation activities and readying other areas of the site to allow for imminent
construction.

Training programmes will continue to run throughout the year to ensure that sufficient people
from the local communities are qualified for jobs created during the construction and mining phases.


Permitting update 

There is strong support for the Salamanca mine throughout all levels of government. To date, the
Company has received more than 90 favourable reports and permits for the development of the mine.


The Urbanism Commission of Salamanca gave an Express Resolution for the granting of the
Authorisation of Exceptional Land Use, with the licence to be formally issued in due course.  

With the Mining Licence, Environmental Licence and the Authorisation of Exceptional Land Use
already obtained, the remaining approval is the Construction Authorization by the Ministry of
Industry, Energy and Tourism for the treatment plant as a radioactive facility, which is currently
in process.


Competent Persons Statement
The information in this announcement that relates to the FEED was extracted from the announcement
entitled Capital costs for Salamanca reduced by 1% to  82.3 million dated 6 July 2017, which is
available to view on Berkeleys Energia Limiteds (Berkeley) website at www.berkeleyenergia.com.

Berkeley confirms that: a) it is not aware of any new information or data that materially affects
the information included in the original announcement; b) all material assumptions and technical
parameters underpinning the FEED results included in the original announcement continue to apply and
have not materially changed; and c) the form and context in which the relevant Competent Persons
findings are presented in this announcement have not been materially modified from the original
announcements.

The information in the original announcement that relates to the FEED costs is based on, and
fairly represents, information compiled by Mr Francisco Bellon, a Competent Person who is a member
of the Australasian Institute of Mining and Metallurgy. Mr Bellon is the Chief Operating Officer for
Berkeley and a holder of shares, options and performance rights in Berkeley.  Mr Bellon has
sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves. 

Forward Looking Statements

Statements regarding plans with respect to Berkeleys mineral properties are forward-looking
statements.  There can be no assurance that Berkeleys plans for development of its mineral
properties will proceed as currently expected.  There can also be no assurance that Berkeley Energia
will be able to confirm the presence of additional mineral deposits, that any mineralisation will
prove to be economic or that a mine will successfully be developed on any of Berkeley mineral
properties. These forward-looking statements are based on Berkeleys expectations and beliefs
concerning future events.  Forward looking statements are necessarily subject to risks,
uncertainties and other factors, many of which are outside the control of Berkeley, which could
cause actual results to differ materially from such statements. Berkeley makes no undertaking to
subsequently update or revise the forward-looking statements made in this announcement, to reflect
the circumstances or events after the date of that announcement.

Appendix 1: Summary of Mining Tenements
As at 30 June 2017, the Company had an interest in the following tenements:
Location   Tenement Name    Percentage  Status
                             Interest

Spain
Salamanca  D.S.R Salamanca  100%        Granted
            28
            (Alameda)

           D.S.R Salamanca  100%        Granted
            29
            (Villar)

           E.C. Retortillo-S100%        Granted
           antidad

           E.C. Lucero      100%        Pending
           I.P. Abedules    100%        Granted
           I.P. Abetos      100%        Granted
           I.P. Alcornoques 100%        Granted
           I.P. Alisos      100%        Granted
           I.P. Bardal      100%        Granted
           I.P. Barquilla   100%        Granted
           I.P. Berzosa     100%        Granted
           I.P. Campillo    100%        Granted
           I.P. Castaños 2  100%        Granted
           I.P. Ciervo      100%        Granted
           I.P. Dehesa      100%        Granted
           I.P. El Águlia   100%        Granted
           I.P. Espinera    100%        Granted
           I.P.Halcón       100%        Granted
           I.P. Horcajada   100%        Granted
           I.P. Mailleras   100%        Granted
           I.P. Mimbre      100%        Granted
           I.P. Oñoro       100%        Granted
           I.P. Pedreras    100%        Granted
           I.P. El Vaqueril-100%        Pending
           I.P. Calixto     100%        Pending
           I.P. Melibea     100%        Pending
           I.P. Clerecía    100%        Pending
           I.P. Clavero     100%        Pending
           I.P. Conchas     100%        Pending
           I.P. Lis         100%        Pending
           E.P. Herradura   100%        Pending
Cáceres    I.P. Almendro    100%        Granted
           I.P. Ibor        100%        Granted
           I.P. Olmos       100%        Granted
Badajoz    I.P. Don Benito  100%        Granted
            Este

           I.P. Don Benito  100%        Granted
            Oeste

Ciudad RealI.P. Damkina Frac100%        Granted
           cion
            1
           I.P. Damkina Frac100%        Granted
           cion
            2
           I.P. Damkina Frac100%        Granted
           cion
            3
-
No tenements were acquired or disposed of during the quarter ended 30 June 2017. There were no
changes to beneficial interest in any mining tenements due to Farm-in or Farm-out agreements. No
beneficial interest in Farm-in or Farm-out agreements were acquired or disposed during the
quarter.



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